Commodity hedge fund Opus closing, cites 'challenging market'

NEW YORK (Reuters) - Opus, a major commodity hedge fund, is winding down, recalling its investment in remaining funds and returning capital to investors, citing a challenging market for commodities.

Schroders, the London-based asset manager that owns NewFinance Capital, of which Opus was a part, confirmed the shutdown to Reuters on Tuesday.

Opus is a fund of hedge funds. Its managers, David Mooney and Cedric Bellanger, will leave Schroders, which has around $446 billion under management, according to the company’s website.

Opus held stakes in 17 commodities hedge funds as of last year, according to The Financial Times, which first reported the fund’s closure.

“We can confirm that in the best interest of shareholders, Schroders has decided to wind up Opus Commodities Fund Limited and Opus Commodities Core Plus A Fund Limited given pending redemptions and the challenging market for commodities more generally,” Schroders said in a statement.

Commodities traders have struggled to make profits as price volatility in key markets has declined in recent years.

One of Opus’s funds, Astenbeck, was managed by former Phibro oil trader Andy Hall, who made headlines for receiving a $100 million bonus from Citigroup in 2008.